🚨New York Life funded a $130M refinancing for Sukut Real Properties’ 21-asset, 1.1M SF industrial portfolio across LA, OC, San Diego, and the Inland Empire. The assets are ~98% leased, with JLL arranging the debt. The transaction signals that life companies remain highly active in stabilized SoCal infill industrial, despite broader market dislocation. For CRE borrowers, this underscores lender preference for diversified, high-occupancy industrial pools with modest premiums to 2021–22 pricing, while office continues to face liquidity scarcity.
Loan Size: $130M refinancing across 21 infill industrial asset
Portfolio Size: ~1.1M SF, ~98% leased, multi-county SoCal footprint
NYL Lending Program: ~$6B annual CRE loan origination target
Loan Performance. With stabilized rent rolls, DSCR clears ≥1.35x even at today’s rates. Life-cos will size conservatively (55–65% LTV), but tenancy strength supports execution.
Demand Dynamics. Rent growth has cooled from 2021 highs but remains positive (2–4% renewals). Inland Empire absorption tracks port volume, while LA/OC infill remains landlord-favorable.
Asset Strategies. Portfolio-level cross-collateralization is key to maximizing proceeds. Operators should fund roof/HVAC reserves and prepare quick-turn TI packages to maintain tenant retention.
Capital Markets. Life-cos are quoting tight spreads for infill industrial, offering certainty of execution. Bank and CMBS appetite remains selective, with pricing premia above industrial but materially better than office.
Stabilized infill industrial remains financeable at scale.
Rent growth has decelerated but supports NOI stability.
Life-cos are reliable counterparties for large refis.
Expect conservative sizing but competitive quotes on credit-backed portfolios.
🛠 Operator’s Lens
Refi. Assemble clean rent rolls and insurance reports to accelerate lender approvals.
Value-Add. For shallow-bay/IOS assets, pre-lease to last-mile or medical-logistics tenants.
Development. New builds should target sticky users with dock/yard upgrades and power redundancy.
Lender POV. Life-cos will compete aggressively on stabilized industrial but expect DSCR discipline and reserves for insurance and capex.
2025–26 maturities will drive more multi-asset refis, especially for institutional portfolios.
Rent growth remains modest, but low vacancy underpins cash flow.
Watch Inland Empire absorption and West Coast port throughput for 2026 guidance.
Commercial Observer — “New York Life Funds $130M Refi on SoCal Industrial Portfolio” (Sept. 23, 2025). Commercial Observer, JLL, New York Life
